Indiana Life Insurance Exam Questions and Answers Rated A+

Indiana Life Insurance Exam Questions and Answers Rated A+ Which of the following is NOT a characteristic of a Variable Annuity? A. Premium Payments may be level or flexible or single premium B. The cash values are invested in securities. C. The non-forfeiture values will provide for the return of the cash value should the annuitant die during the accumulation period. D. It provides for a tax-free death benefit. D. It provides for a tax-free death benefit. All of the following policies provide for the tax deferred accumulation of cash value EXCEPT: A. Interest Sensitive Whole Life B. Single Premium Variable Annuity C. Variable Universal Life D. Term Life D. Term Life All of the following are true statements about the taxation of life insurance benefits except: A. Policy loans are taxed as ordinary income B. The cash value in a life insurance policy grows on a tax deferred basis. C. The interest earned on the "interest" Settlement Option is taxed as ordinary income. D. The death benefit of a life policy is received by the beneficiary federal income tax free. A. Policy loans are taxed as ordinary income Which of the following statements is true about the Group Life conversion privilege? a. Death during the conversion period is covered even if the departing employee chooses NOT to convert to an individual policy. b. The departing employee must pay the premium if they elect to be covered during the conversion period. c. If a departing employee elects to convert their life insurance, the company must offer Term insurance as a choice. d. Under the COBRA laws a departing employee may elect to remain a member of the Group Life plan for a limited period of time. A. Death during the conversion period is covered even if the departing employee chooses NOT to convert to an individual policy. Which of the following is a combination of Decreasing Term and Whole Life? a. Family Income Policy b. Family Maintenance Policy c. Modified Life d. Family Policy A. Family Income Policy A type of Annuity in which the cash values are invested in securities is called: a. Variable b. Deferred c. Joint and Survivorship d. Flexible